Overview

• On July 1, the Senate approved the $4.5 trillion reconciliation package by a 51-50 vote, with Vice President JD Vance casting the tie-breaking vote.
• The legislation extends Trump-era tax cuts, boosts defense and border funding, and covers costs with deep cuts to Medicaid and SNAP that include new work requirements.
• The Congressional Budget Office projects the bill will add about $3.3 trillion to the federal deficit over the next decade and lead to nearly 12 million more uninsured Americans.
• House GOP leaders fast-tracked the measure through the Rules Committee but can tolerate only three defections in their 220-212 majority, highlighting deep intraparty tensions.
• Democrats are united in opposition, arguing the bill favors high-income earners while stripping health care and nutrition support from lower- and middle-income families.